ViacomCBS is the most recent media conglom to faucet the debt market, saying plans to lift $2.5 billion by promoting notes.
Disney raised $6 billion final week and Comcast $Four billion earlier this week as firms in – comparatively – robust positions look to construct up a money cushion in opposition to the unsure economics of a spreading coronavirus pandemic.
ViacomCBS will promote $1.25 billion 4.75% senior notes due 2025 and $1.25 billion in 4.95% senior notes due 2031. The sale is predicted to shut on April 1.
ViacomCBS stated it intends to make use of the online proceeds from the providing for normal company functions, which can embody compensation of excellent indebtedness.
BofA Securities, Goldman Sachs, J.P. Morgan Securities and Morgan Stanley are managing the sale.
Different comapnies, like Discovery and AMC Leisure have beeen tapping revovling credit score strains – mainly loans which might be earmarked and obtainable however sit there till drawn down. Firms begin paying curiosity once they faucet them.
ViacomCBS’ senior unsecured debt is at present rated BBB (secure) by Fitch Rankings, Baa2 (secure) by Moody’s Buyers Service and BBB (detrimental) by S&P World Rankings.